Singapore

SG Dubai housing market sees stellar growth

Dubai’s residential property market saw healthy growth in nearly all sectors in the past six months with low-cost villas posting the sharpest price gain of 20.2 percent, according to a report by property specialist Cluttons.

Average prices of mid-range villas also recorded an increase of 14.9 percent, while values of high-end villas inched up 8.9 percent. Similarly, prices of both high-end and mid-range luxury apartments posted climbed 10 percent, while prices of low-cost apartments rose by 14.6 percent.

Moreover, Dubai’s rental market also recorded substantial growth. Average rents of mid-range villas increased 6.2 percent, while its high-end counterparts grew 9.7 percent. However, low-cost villas dominated the segment with a growth of 19.6 percent.

Apartment rental values also followed the increase with rents of low-cost units posting the largest gain of 12.7 percent, followed by mid-range apartments (7.7 percent) and its luxury counterparts with 6.4 percent.

Cluttons’ research indicates that the rising rents are spurring the demand for more affordable units which have struggled in the past three years.

“We are buoyed by the renewed confidence in Dubai’s residential market and increased activity in the sector. This has naturally led to price rises — as much as 20 percent in one quarter,” said Steven Morgan, Head of Cluttons UAE.

“In many other developed markets this would be classed as a ‘boom’ and it would be short sighted not to have some consideration to this. We welcome moves from the Central Bank to prevent the development of an overheated market and the likelihood of a bust scenario,” he added.

Nikki De Guzman, Junior Reporter at PropertyGuru, wrote this story. To contact her about this or other stories email nikki@allproperty.com.sg